Hello, I am filing amended return for both Federal and Michigan State for year 2019, because I did not get the 1099s from a brokerage company. As the result of amendment, I owe about $300 federal tax and $75 state tax more than the taxes in the original federal an state returns. TurboxTax does not calculate the potential interest and penalty on the federal 1040X nor the state tax forms, so I don't know whether there will be interests and penalties. I filed the original tax returns in March 2020, so now I am sending in the amended returns in January 2021. Someone told me I could request a waiver of interest and penalty to federal and state.
- Should I include a letter with the Federal and State amended returns asking for a waiver of interest and penalty without knowing whether there will be any, or how much are the amounts? Or should I wait until to hear from the Federal and State to see there are interests and penalties, and if so, the amounts, then send the waiver request?
- If there are interests and penalties, how much may they be given the 2019 original return due date was 4/15/2020 (I filed the original federal and state return in March 2020, and now is January 2021 when I'll be filing the amended returns?
- I understand that for Federal, it may take up to 16 weeks to process the return. I am enclosing a check to pay the additional tax owed with the mail-in amended return. Would the interest and penalty calculated to the time that they process the return, or some other time frame such as when they receive the amended return?
- Also, the reason that I need to amend the returns is because I did not get the 1099s from a brokerage firm. What should I put in Part III of the 1040X as explanations? I would check off the AGI box since the 1099DIV dividends and 1099B stock sale changed the AGI. For the explanation section, is "Did not get the 1099s from a brokerage company" sufficient, or do I need to put in more detail (for example?)
Thank you for your help in advance
